Chubb Reports Third Quarter Per Share Net Income and Core Operating Income of $5.70 and $5.72, Up 15.2% and 15.6%, Respectively, with P&C Underwriting and Net Investment Income Both Up Double-Digit; Global P&C and Life Insurance Net Premiums Written
Net income was $2.32 billion, up 13.8%, and core operating income was $2.33 billion, up 14.3%. For the nine months, net income and core operating income were a record $6.70 billion and $6.75 billion, up 16.9% and 13.8%, respectively. On a per share basis, year-to-date net income and core operating income of $16.38 and $16.50 were records and up 18.8% and 15.6%.
Consolidated net premiums written were up 5.5%, or 6.6% in constant dollars.
P&C net premiums written were up 5.4%, or 6.1% in constant dollars.
Global P&C net premiums written, which excludes Agriculture, were up 7.6%, or 8.5% in constant dollars, with commercial insurance up 8.1% and consumer insurance up 9.4%. North America was up 7.8%, including growth of 10.0% in personal insurance and 7.2% in commercial insurance, with P&C lines up 9.9% and financial lines down 5.1%. Overseas General was up 4.9%, or 7.5% in constant dollars, with growth of 8.5% in consumer insurance and 6.7% in commercial insurance; Asia-Pacific, Latin America, and Europe were up 9.2%, 7.7%, and 7.1%.
Agriculture net premiums written were down 9.3% due to lower commodity prices while our market share grew.
P&C underwriting income was $1.46 billion, up 11.7%, with a combined ratio of 87.7%. P&C current accident year underwriting income excluding catastrophe losses was a record $1.98 billion, up 11.5%, with a combined ratio of 83.4%. For the nine months, P&C underwriting income was $4.28 billion, up 8.4%, and $5.41 billion, up 11.0%, on a current accident year excluding catastrophe losses basis, leading to a combined ratio of 83.4%.
Pre-tax catastrophe losses were $765 million, including $250 million from Hurricane Helene, compared with $670 million last year.
Pre-tax net investment income was $1.51 billion, up 14.7%, and adjusted net investment income was $1.64 billion, up 15.9%. Both were records.
Life Insurance net premiums written were $1.55 billion, up 6.8%, or 10.6% in constant dollars, and segment income was $284 million, up 2.3% in constant dollars, with International Life up 9.1%. Life Insurance net premiums written and deposits collected were $2.14 billion, up 16.1%, or 19.9% in constant dollars.
Annualized return on equity (ROE) was 14.7%. Annualized core operating return on tangible equity (ROTE) was 21.7% and annualized core operating ROE was 13.9%.
ZURICH, Oct. 29, 2024 /PRNewswire/ -- Chubb Limited (NYSE:CB) today reported net income for the quarter ended September 30, 2024 of $2.32 billion, or $5.70 per share, and core operating income of $2.33 billion, or $5.72 per share. Book value per share and tangible book value per share increased 8.0% and 12.8%, from June 30, 2024 and now stand at $163.16 and $102.67. Book value was favorably impacted by after-tax net realized and unrealized gains of $3.53 billion in the company's investment portfolio and $344 million of foreign currency gains. Book value per share and tangible book value per share excluding AOCI increased 2.7% and 4.3%, from June 30, 2024.
Chubb Limited
Third Quarter Summary
(in millions of U.S. dollars, except per share amounts and ratios)
(Unaudited)
(Per Share)
2024
2023
Change
2024
2023
Change
Net income
$2,324
$2,043
13.8 %
$5.70
$4.95
15.2 %
Adjusted net realized (gains) losses and other,
net of tax
(220)
(34)
NM
(0.54)
(0.08)
NM
Market risk benefits (gains) losses, net of tax
230
32
NM
0.56
0.08
NM
Core operating income, net of tax
$2,334
$2,041
14.3 %
$5.72
$4.95
15.6 %
Annualized return on equity (ROE)
14.7 %
15.5 %
Core operating return on tangible equity (ROTE)
21.7 %
21.2 %
Core operating ROE
13.9 %
13.5 %
For the nine months ended September 30, 2024, net income was $6.70 billion, or $16.38 per share, and core operating income was $6.75 billion, or $16.50 per share. Book value per share and tangible book value per share increased 11.1% and 16.7%, from December 31, 2023. Book value was favorably impacted by after-tax net realized and unrealized gains of $2.47 billion in the company's investment portfolio. Book value per share and tangible book value per share excluding AOCI increased 7.7% and 10.6%, from December 31, 2023.
Chubb Limited
Nine Months Ended Summary
(in millions of U.S. dollars, except per share amounts and ratios)
(Unaudited)
(Per Share)
2024
2023
Change
2024
2023
Change
Net income
$6,697
$5,728
16.9 %
$16.38
$13.79
18.8 %
Adjusted net realized (gains) losses and other,
net of tax
(189)
45
NM
(0.46)
0.11
NM
Market risk benefits (gains) losses, net of tax
238
154
54.5 %
0.58
0.37
56.8 %
Core operating income, net of tax
$6,746
$5,927
13.8 %
$16.50
$14.27
15.6 %
Annualized return on equity (ROE)
14.3 %
14.8 %
Core operating return on tangible equity (ROTE)
21.5 %
21.1 %
Core operating ROE
13.6 %
13.3 %
For the nine months ended September 30, 2024 and 2023, the tax expenses (benefits) related to the table above were $(75) million and $(164) million, for adjusted net realized gains and losses and other; and $1.41 billion and $1.36 billion, for core operating income.
Evan G. Greenberg, Chairman and Chief Executive Officer of Chubb Limited, commented: "We had an outstanding quarter which contributed to record year-to-date results. Core operating income and EPS were up 14.3% and 15.6%, respectively, in the quarter, supported by double-digit growth in both P&C underwriting and investment income. Core operating income and EPS for the year are up 13.8% and 15.6%. For the year, we have produced record underwriting and investment income. Book and tangible book value per share are up 11.1% and 16.7% year-to-date, and our core operating ROE is 13.6%.
"Our P&C underwriting results in the quarter were excellent, with strong contributions from all divisions, though it was an active quarter for industrywide catastrophe losses. We published a combined ratio of 87.7% with P&C underwriting income up over 11.5%. On an ex-CAT current accident year basis, underwriting income of $2 billion led to a world-class combined ratio of 83.4%. On the other side of the balance sheet, we manage an invested asset of $151 billion and generated adjusted investment income in excess of $1.6 billion, up nearly 16%.
"For the quarter, we had strong premium revenue results in our North America P&C, International P&C, and Life Insurance divisions. Global P&C net premiums written, which excludes agriculture, grew 7.6%, or 8.5% in constant dollars, with commercial premiums up over 8% and consumer up 9.4%, while life insurance premiums were up 10.6%. Premiums in North America were up 7.8% and consisted of 10% growth in high-net-worth personal insurance and 7.2% growth in commercial, with P&C lines up 9.9% and financial lines down about 5%. In our international P&C business, premiums were up 7.5% in constant dollars, with commercial up 6.7% and consumer up 8.5%. Asia-Pacific, Latin America, and Europe were up 9.2%, 7.7% and 7.1%, respectively.
"Commercial P&C underwriting conditions globally, including North America, financial lines aside, are favorable in both property and casualty. In fact, our property and casualty pricing in aggregate in North America, led by rate, improved over prior quarter and pricing is ahead of loss-cost inflation. In our consumer P&C operations, underwriting and growth conditions are attractive, and we grew both our North America high-net-worth and international personal lines businesses at a double-digit pace in constant dollars.
"In summary, we had another excellent quarter and are having a record earnings year. Notwithstanding the fact that we are in the risk business, with so many opportunities and avenues for growth globally, we remain confident in our ability to continue growing our operating earnings and EPS at a superior rate through P&C revenue growth and underwriting margins, investment income, and life income."
Operating highlights for the quarter ended September 30, 2024 were as follows:
Chubb Limited
Q3
Q3
(in millions of U.S. dollars except for percentages)
2024
2023
Change
Consolidated
Net premiums written (increase of 6.6% in constant dollars)
$
13,829
$
13,104
5.5 %
P&C
Net premiums written (increase of 6.1% in constant dollars)
$
12,277
$
11,652
5.4 %
Underwriting income
$
1,457
$
1,305
11.7 %
Combined ratio
87.7 %
88.4 %
Current accident year underwriting income excluding catastrophe losses
$
1,978
$
1,775
11.5 %
Current accident year combined ratio excluding catastrophe losses
83.4 %
84.3 %
Global P&C (excludes Agriculture)
Net premiums written (increase of 8.5% in constant dollars)
$
10,898
$
10,131
7.6 %
Underwriting income
$
1,321
$
1,200
10.2 %
Combined ratio
87.3 %
87.6 %
Current accident year underwriting income excluding catastrophe losses
$
1,819
$
1,661
9.6 %
Current accident year combined ratio excluding catastrophe losses
82.6 %
83.0 %
Life Insurance
Net premiums written (increase of 10.6% in constant dollars)
$
1,552
$
1,452
6.8 %
Segment income (increase of 2.3% in constant dollars)
$
284
$
